Forex FAQ and answers
FAQ How do you trade with candlesticks?
ANS Candlesticks are not enough criteria to trade. You have to be clear about the trade and never place a buy or sell because of an open candle. You have to look for other supports like the Fibonacci support and other indicators.
FAQ how do I deal with trade or start trading when I have not traded for a while.
ANS it is very normal to find trading difficult because there must have been a lot change in price from the last time you traded or took a break. It is advisable to trade demo again until you can acclimatize to the current flow of price.
FAQ how does greed affect my trade
ANS when you are greedy you tend to exceed risk limit to trade
FAQ how does my being confident affects my trade
ANS when you are too confident on your trade, I think you need a break because it can lead you to neglecting your risk principle
when you go about breaking rules, they will eventually break you.
Q what is the best profit strategies for trading forex
ANS there are different strategies for different time frames and situations so do not be too attached to a particular strategy. Learn to know what strategy suits the pending or the market conditions.
Q how much should I risk per trade
ANS you have to risk according to
- Volatility of the trade pair
- Maxim um risk rule
- Support and resistance
- Some indicators can be very helpful
FAQ how can stress be avoided
ANS he who fails to plan, plans to fail. When you make plans ahead trading, it helps you to reduce stress and be more rational in making decision
FAQ what is the best time frame to trade?
ANS longer time frames are more reliable to trade with
FAQ how many trade can I place can I place
ANS you should set a trading limit for yourself. This trading limit should fall within the size of your account. When you are overtrading, that is a sign of over confidence and you should take a break
FAQ how do I know when a trend is reversing
ANS trends can go on for a long time following the 20, 30, 50 EMA rule. Once the rule is violated, you might be having a reversal. It is never certain so it is dangerous trying to catch a trend reversal. Follow the trend because the trend is your friend.
Question and answer continue
FAQ how can I tell a market is trending before it start
ANS you cannot predict a trend but you can tell how it goes.
FAQ how can I avoid the effect of economic data release
ANS If you are a short time trader, you can just avoid by exiting the trade. For a long time trader it is best to tighten stop loss and reenter your position if the stop was reached
FAQ How do I know if the trend changes or pull back?
ANS it is not possible to know. It is better you check the overall trend or check a longer time frame
FAQ how I know any trade will make profit
ANS there are no guarantees from any strategy to win all trade but most trade
FAQ how do I protect my profit from changing back to loss
ANS the best option here is the use of trail stop
Q what is the best stop los to use?
ANS the best stop loss is the one that is placed according to the volatility and that which protect your account best.